People tend to confuse the concept of making money and having money.
Here is a quote from a great book The Millionaire Next Door, by Thomas J. Stanley, Ph.D., & William D. Danko, Ph.D.:
“Most people have it all wrong about wealth in America. Wealth is not the same as income. If you make a good income each year and spend it all, you are not getting wealthier. You are just living high. Wealth is what you accumulate, not what you spend.”
One of the traps people fall into with their student loans is trying to get the lowest monthly payment possible. What that usually ends up doing is making it easier to spend money on “stuff” rather than on paying off your student loans.
A low student loan payment is a wealth destroyer rather than a wealth builder.
Here’s an important question for you: Do you have a net worth or a NOT worth? Your net worth is the difference between your assets and your liabilities. It’s a reflection of how well you are creating real financial value in your life.
What is your personal net worth? Read this post and determine what your net worth is.
Creating a strong net worth is a critical part of winning financially in life. Paying your student loans off as fast as humanly possible will help you build a net worth you can be proud of.
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